Simbisa in $6.3 million profit

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Simbisa in $6.3 million profit

Simbisa Brands reported a net income of $6.3 million, up from $5 million last year driven by an eight percent growth in revenue.

Revenue grew from $146.6 million in the same period last year to $158.9 million as the group opened up new stores across the region.

In Kenya, Simbisa opened 8 new counters and closed four, bringing the total to 121 as at June 30.

The Zimbabwe operation increased by a net of four counters, bringing the total to 194.

Revenue increased by nine percent to $100 million from $92 million last year.

“We are impressed by the organic growth in the (Zimbabwe) market which reflects management efforts over the last year to improve customer service and provide value offerings to our customers. The market contributed $15.5 million to operating profit during the period,” said chairman Addington Chinake.

Regional operations in Kenya, Zambia, Ghana, the Democratic Republic of Congo and Mauritius contributed $58.4 million to group revenue, up from $54.5 million last year.

“Our Mauritius roll out had not reached scale for most of the period under review and we experienced a significant decline in earnings in DRC due to macro-economic challenges in the market,” said Chinake.

“Significant operating losses were incurred in our Zambian market including once off restructuring costs of $500 000,” he added.

Total assets increased by 9.5 percent from $67.1 million recorded in the prior year to $73.4 million.

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The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.